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11/19/2012 10:30PM

Made in Mexico: The Car-Business Boom

New trade deals and low-cost labor have made Mexico a profitable base for car production. It's also attracting other parts of the auto-supply chain, from steel mills to brake makers, as the "made in mexico" trend grows. WSJ's Nicholas Casey reports.

This transcript has been automatically generated and may not be 100% accurate.

I ... the ... his ... research recline in ... Mexico produces up to twenty five hundred cars a day ... it's Volkswagen's biggest in North America ... and for good reason ... you treat deals including agreements with forty four countries ... are making Mexico unprofitable staging ground for auto manufacturing ... Thomas Carey has worked in Mexico's car industry for more than two decades ... when you go ... you'll ... it was a possibility to export from here ... too many of the market will move over or cars ... carrying ... Duty's Wendy important to this nation country ... and this is thanks to ... the wide meadow ... this creature between them thinks the courthouse ... Volkswagen's Mexican a car space no two teeth coming in Brazil and Argentina for example ... has a thirty five percent tariff cars are imported from Europe the U S ... traded badges like that helped turn the country into fourth largest exporter of cars ... up from ninth place just six years ago ... almost all the world's top auto makers from Nissan Honda ... have plans to build two plants here or expand old ones the next few years ... the rush to build in Mexico's in large part due to cost ... customers and regulators are demanding smaller more fuel efficient vehicles ... and that's putting pressure on car maker's margins ... yep and regional Mexican assembly line workers far lor them that the U S or Europe ... and are even becoming competitive with prices like China where the cost of Labor's on the rights ... one in ten cars sold in the U S last year was manufactured in the Mexican plant ... next year ... every new taxi New York's fleet will be made in Mexico by Nissan ... Mexican made cars have become commonplace in Japan ... and are even going to China ... exports to Brazil exploded in recent years ... prompting the country to ask first recap of how many cars are export ... but still faces challenges and other export ... illegal narcotics ... mission but Lisa cascade of violence throughout the country has claimed at least sixty thousand minus two thousand and six ... surprisingly the auto industry has taken on during that same period ... and attracted other parts of the utmost supply chain ... however let's break makers ... the last six months to the auto parts companies to come here from Japan alone ... that means more prospects for growth as the industrial cluster continues to expand in the maiden Mexico trip ... picks up speed ... the Wall Street Journal this is Nicholas